A bumper monsoon has pushed tractor sales on an overdrive for leading tractor makers such as Mahindra & Mahindra (M&M) and Escorts with sales rising 23 percent in the first quarter of this financial year.
The demand for tractors revived with the recovery in key regions such as western and southern markets, which faced drought last year. The revival in the tractor market comes on the back of a 2% decline last year due to erratic monsoon and a sluggish economy. Analysts say that the trend highlights increased activity in the farming sector, raising hopes of a good monsoon crop that may spur demand in other sectors of the economy as well.
This comes on the back of a good monsoon and increased demand from the farming community even as the automobile industry is looking for aid to spur sales in the commercial vehicles and car segment reeling under the impact of sliding economy.The good monsoon may provide a green umbrella that can be used temporarily to ward off the economic downturn.
Photograph by B Balaji
